Companies Act 2013 · Rules · G.S.R. 129(E)
Companies (Corporate Social Responsibility Policy) Rules, 2014
How CSR under section 135 works in practice: which companies are covered, who may implement projects (CSR-1 registration), the CSR committee and policy, what counts as CSR expenditure, ongoing projects, impact assessment, and reporting. Unspent amounts follow section 135(5) and (6): for an ongoing project they go to an Unspent CSR Account within 30 days of the year end, and otherwise to a Schedule VII fund within six months.
Last checked: 27 October 2026 against the Ministry of Corporate Affairs consolidated rules text.
| Notification | G.S.R. 129(E) dated 27 February 2014 |
|---|---|
| Act sections | 135 |
| MCA forms | CSR-1, CSR-2 |
| Latest amendment | Companies (Corporate Social Responsibility Policy) Amendment Rules, 2026, G.S.R. 415(E) dated 27 May 2026 Inserted rule 4A, allowing CSR through zero coupon zero principal instruments of not-for-profit organisations registered on a Social Stock Exchange. Source: MCA consolidated text · 8 amending notifications shown in MCA's text |
The rules, one by one
Rule numbers and headings follow MCA's consolidated text. Rule 1 (short title) and rule 2 (definitions) are left out unless they matter in practice. The notes are a plain-English guide, not the rule text.
| Rule | Heading | What it says |
|---|---|---|
| 2 | Definitions | CSR does not include activities in the normal course of business, most activities outside India, political contributions, or benefits mainly for employees. An "ongoing project" can run up to three years beyond the year it began. The 2026 amendment adds definitions of not-for-profit organisation and zero coupon zero principal instrument. |
| 3 | Corporate Social Responsibility | CSR applies to a company that, in the preceding financial year, had a net worth of ₹500 crore or more, turnover of ₹1,000 crore or more, or net profit of ₹5 crore or more. |
| 4 | CSR implementation | The board may spend through the company itself, or through a Section 8 company, registered trust or society meeting the conditions, registered with MCA in Form CSR-1. The board must be satisfied the money is used as approved. |
| 4A | CSR through zero coupon zero principal instruments | Inserted in May 2026 (G.S.R. 415(E)). CSR can be spent by subscribing to zero coupon zero principal instruments issued by not-for-profit organisations registered on a Social Stock Exchange, subject to the conditions in the rule. |
| 5 | CSR committees | Composition of the CSR committee. Under section 135(9), a company whose CSR obligation is up to ₹50 lakh need not form one, and the board does its work. |
| 6 | CSR policy | The committee recommends, and the board approves, the CSR policy and an annual action plan. |
| 7 | CSR expenditure | Administrative overheads are capped at 5% of the year's CSR spend. Excess spending can be set off against the next three years' obligation. Capital assets created must be held by the company or an eligible entity. |
| 8 | CSR reporting | The annual report on CSR goes in the board's report. A company whose average CSR obligation over the last three years is ₹10 crore or more must get an impact assessment of projects of ₹1 crore or more that were completed at least a year earlier. |
| 9 | Display of CSR activities on website | The CSR committee composition, policy and projects approved by the board are displayed on the company's website. |
Related
- CSR applicability calculator
- Section 135 explainer
- All Companies Rules · Companies Act 2013 ready reckoner
Other rules explained in detail: Incorporation Rules · Share Capital and Debentures Rules · Acceptance of Deposits Rules · Management and Administration Rules · Accounts Rules · Audit and Auditors Rules · Appointment and Qualification of Directors Rules · Meetings of Board and its Powers Rules · Prospectus and Allotment of Securities Rules · Registration of Charges Rules · Significant Beneficial Owners Rules · Managerial Personnel Rules · Compromises, Arrangements and Amalgamations Rules · Strike-off (Removal of Names) Rules · Registration Offices and Fees Rules
Sources: Ministry of Corporate Affairs, Acts & Rules e-book (consolidated rules with amendment notes), and the Gazette of India notifications named on this page. This page is a plain-English guide, not the text of the rules. Check the current rule on the MCA portal before relying on it.